Although the United States saw a significant rise in gross domestic product in the second quarter, growth is likely to be much slower in the coming months, according to Beth Burnham Mace, chief economist at the National Investment Center for Seniors Housing & Care.
“Growth is likely to be much slower in the coming months as the vast pandemic-related fiscal stimulus starts to wane, pent-up demand begins to fade, and as the COVID-19 delta variant takes its toll,” Mace wrote.
Supply chain disruptions and labor shortages are among the concerns affecting economic recovery.
“The policy question has become whether this inflation growth is transitory or will become more permanently embedded in consumer and business expectations,” the economist said.
Federal Reserve Chair Jerome Powell said recently that the COVID-19 pandemic has permanently altered the U.S. economy. Interest rate hikes are not set to change immediately, according to Powell, “but the markets may not agree with the pace and timing of expected interest rate increases,” Mace said.
